What is a pivot table used for?

A pivot table is specifically designed to summarize and analyze large datasets in a spreadsheet. It allows users to reorganize and aggregate data dynamically, making it easier to extract meaningful insights and trends. By using a pivot table, one can quickly calculate sums, averages, counts, and other statistics without altering the original data.

For example, if you have a sales dataset that includes multiple products, pivot tables enable you to view total sales per product, sales by region, or sales over specific time periods all within a few clicks. This feature is particularly valuable when dealing with extensive data sets, as it streamlines the process of data analysis, allowing for more efficient decision-making based on the summarized information.

In contrast, creating charts and graphs focuses on visual representation rather than data analysis, formatting cells pertains to adjusting appearances without altering the underlying data structure, and merging multiple sheets involves combining data but does not in itself provide a structured analysis of that data. Each of these functions serves a different purpose in spreadsheet management and data handling.